Paras Shah, said to be earning £1m a year, is reportedly accused of taking sandwiches from Citigroup's canteen.Read more
Citigroup has suspended one of its most senior bond traders in London after the US investment bank accused him of stealing food from the office canteen, according to the FT.
Paras Shah left his post last month as Citi’s head of high-yield bond trading for Europe, the Middle East and Africa after the bank alleged he had stolen food from the canteen at its European headquarters in Canary Wharf, London, the report says.
The 31-year-old was one of the highest-profile credit traders in Europe, having joined Citi in 2017 after about seven years at HSBC.
Citigroup has delivered better-than-expected fourth quarter figures today.
The US bank was boosted by growth in its credit card business and a 31% jump in trading revenue.
Revenue, net of interest expense, rose about 7% to $18.38bn, better than analysts' expectations of $17.86bn.
Citigroup’s UK operations have been hit with a £44m fine, the highest ever from the Bank of England.
the Wall Street bank made “significant errors” in reporting its capital and liquidity positions over a four-year period, the Bank said.
Its framework for reporting its capital and leverage was inadequate, with patchy documentation and without proper resourcing, leaving an incomplete view of its financial health, the Prudential Regulation Authority said.
Sam Woods, the PRA’s chief executive, said: “Citi failed to deliver accurate returns and failed to meet the standards of governance and oversight of regulatory reporting which we expect of a systemically important bank.”
Citigroup has reported higher profit and revenue driven by growth in its global consumer business and lower expenses.
Citi's net income applicable to the bank rose 6% to $4.9bn in the third quarter from $4.6bn a year earlier.
The bank said revenue in its consumer business rose 4% excluding the impact of currency fluctuations.
Consumer business was padded out by more US credit card customers beginning to pay interest as promotional periods wore off.
North America branded card revenue jumped 11% in the quarter.
Citigroup's Global Markets business has been fined $1.25m for failing to perform proper background checks on thousands of employees between 2010 and 2017.
The Financial Industry Regulatory Authority said the US bank did not conduct "timely or adequate" background checks for 10,400 non-registered employees. As a result, it said, the bank employed at least three individuals with criminal histories.
Citi neither admitted or denied the charges and a representative told Reuters the bank is pleased to have the matter resolved.
Five banks are being sued in the UK over allegations they rigged the foreign exchange markets.
The case has been brought after the five were fined by the European Commission for breaching EU competition law, including the involvement of some of them the "Banana Split" cartel.
The claim, estimated to be worth more than £1bn against Barclays, JP Morgan , Royal Bank of Scotland, UBS and Citigroup, was filed in the Competition Appeal Tribunal (CAT) on Monday.
That's according to US law firm Scott + Scott which is working with Michael O’Higgins, the former chairman of the Pensions Regulator, who is bringing the claim.
"Just as compensation has been won in the US, our legal action in the UK will seek to return hundreds of millions of pounds to pension funds and other corporates who were targeted by the cartel,” said Mr O’Higgins.
It is using the Consumer Rights Act 2015 which was intended to make it far easier for groups of consumers to seek compensation from firms that have fixed prices and formed cartels.
The banks involved did not comment (when asked by Reuters).
BBC Radio 4
The US earnings season has well and truly begun, with the likes of Citigroup, JP Morgan and Goldman Sachs this week publishing their second quarter results.
And Janus Henderson Investors's Laura Foll says we should take note: "Why this is important is that it is a difficult time for banks globally at the moment."
She says: "Interest rates are very low and are possibly about to go even lower in the US and that makes it very difficult for banks to make money because effectively when interest rates are this low you can't charge much for loans to put it very simply and that matters for the global economy."
BBC Radio 4
The US earnings season kicks off today with banking giant Citigroup among the first to report second quarter figures but investors are expecting a run of soft results.
"Softness is probably putting it mildly," says Mouhammed Choukeir, chief investment officer at Kleinwort Hambros.
Following a 0.3% fall in average earnings in the first quarter, Mr Choukeir says for the second quarter there are "expected to be down about 2.5% to 3% year on year which would take us into potentially into an earnings recession."
Though he adds: "Paradoxically the US equity indices are at all-time highs, which just goes to show it is not just earnings that [investors] they look for in terms of market performance."